PV author educates youths about money management

Today's youths face a slew of financial pressures, from a hostile job market to soaring tuition rates and debt problems.

Sharon Lechter has dedicated her life to easing the pressures.

In 1992, Lechter, a Paradise Valley resident and author, was shocked when her oldest son accrued $2,500 in credit-card debt during his first semester in college.

The experience was a catalyst for Lechter, who combined her background as a certified public accountant with a yearning to teach people about money management.

She co-wrote the bestselling book, "Rich Dad, Poor Dad," and held a position on the managerial board for Rich Dad companies. In 2007, she resigned to pursue another passion: educating youths.

Lechter is the founder of Pay Your Family First, a Scottsdale company that teaches financial literacy to children, teens and young adults.

The company was recently tapped to provide educational content for Whyville.net, a popular "virtual world" website for young people.

Lechter joins a handful of companies that contribute to Whyville content. More than 6 million people have registered on the site to create "avatar" personas and participate in real-world activities, such as launching virtual businesses.

"The kids in Whyville have already created their own economy," said Lechter, who uses interactive programs to teach kids about finance. "We're going to step in and provide support on how to start building businesses and marketing tips."

James Bower, founder of Whyville-creator Numedeon Inc., said Pay Your Family First aligns with what the company would like children to learn in the real world.

"If there is one take-home message from the recent global financial meltdown, it is that nobody can afford to have financially illiterate citizens," Bower said.

A 2009 study of national usage rates and trends by student-loan corporation Sallie Mae showed 91 percent of college undergraduates have at least one credit card, an increase of 15 percent since 2004.

The average student will graduate with $4,100 in credit-card debt, up 41 percent from the same study in 2004.

"They were raised with easy money that was easy to get into," said Lechter, who has three children and three grandchildren. "Our children are with us when we buy something - I call it the 'just charge' mentality - but they're not with us when we pay the bills."

Legislation that took effect in February cracks down on credit-card marketing to college students. Under a provision in the Credit Card Accountability, Responsibility and Disclosure Act, students 20 and under can obtain a credit card only if their parent or guardian co-signs.

Pay Your Family First teaches kids to manage money and use credit cards wisely.

"If we haven't taught young people the financial skills they need on how to deal with the credit cards, then it is shame on us," Lechter said.